FATF Recommendations

International Standards on Combating Money Laundering and the Financing of Terrorism & Proliferation - the FATF Recommendations

The FATF Recommendations

www.fatf-gafi.org/recommendations 

Paris, 16 February 2012

Money laundering, terrorist financing, and the financing of the proliferation of weapons of mass destruction are serious threats to security and the integrity of the financial system.

The FATF Standards have been revised to strengthen global safeguards and further protect the integrity of the financial system by providing governments with stronger tools to take action against financial crime. At the same time, these new standards will address new priority areas such as corruption and tax crimes.

The revision of the Recommendations aims at achieving a balance:

  • On the one hand, the requirements have been specifically strengthened in areas which are higher risk or where implementation could be enhanced. They have been expanded to deal with new threats such as the financing of proliferation of weapons of mass destruction, and to be clearer on transparency and tougher on corruption.
  • On the other, they are also better targeted – there is more flexibility for simplified measures to be applied in low risk areas. This risk-based approach will allow financial institutions and other designated sectors to apply their resources to higher risk areas.
    The FATF Recommendations are the basis on which all countries should meet the shared objective of tackling money laundering, terrorist financing and the financing of proliferation. The FATF calls upon all countries to effectively implement these measures in their national systems.  

FATF Recommendations 2012

A – AML/CFT POLICIES AND COORDINATION

1  -  Assessing risks & applying a risk-based approach
2  -  National cooperation and coordination

B – MONEY LAUNDERING AND CONFISCATION

3  -  Money laundering offence
4  -  Confiscation and provisional measures

C – TERRORIST FINANCING AND FINANCING OF PROLIFERATION

5  -  SRII Terrorist financing offence
6  -  SRIII Targeted financial sanctions related to terrorism & terrorist financing
7  -  Targeted financial sanctions related to proliferation
8  -  Non-profit organisations

 D – PREVENTIVE MEASURES

9  -  Financial institution secrecy laws

Customer due diligence and record keeping

10  -  Customer due diligence
11  -   Record keeping

Additional measures for specific customers and activities

12  -  Politically exposed persons
13  -  Correspondent banking
14  -  Money or value transfer services
15  -  New technologies
16  -  Wire transfers

Reliance, Controls and Financial Groups

17  -  Reliance on third parties
18  -  Internal controls and foreign branches and subsidiaries
19  -  Higher-risk countries

Reporting of suspicious transactions

20  -  Reporting of suspicious transactions
21  -  Tipping-off and confidentiality

Designated non-financial Businesses and Professions (DNFBPs)

22  -  DNFBPs: Customer due diligence
23  -  DNFBPs: Other measures

 E – TRANSPARENCY AND BENEFICIAL OWNERSHIP OF LEGAL PERSONS AND ARRANGEMENTS

24  -  Transparency and beneficial ownership of legal persons
25  -  Transparency and beneficial ownership of legal arrangements

 F – POWERS AND RESPONSIBILITIES OF COMPETENT AUTHORITIES AND OTHER INSTITUTIONAL MEASURES

Regulation and Supervision

26  -  Regulation and supervision of financial institutions
27  -  Powers of supervisors
28  -  Regulation and supervision of DNFBPs

Operational and Law Enforcement

29  -  Financial intelligence units
30  -  Responsibilities of law enforcement and investigative authorities
31  -  Powers of law enforcement and investigative authorities
32  -  Cash couriers

General Requirements

33  -  Statistics
34  -  Guidance and feedback

Sanctions

35  -  Sanctions

 G – INTERNATIONAL COOPERATION

36  -  International instruments
37  -  Mutual legal assistance
38  -  Mutual legal assistance: freezing and confiscation
39  -  Extradition
40  -  Other forms of international cooperation

 

Historical versions of the FATF Recommendations

FATF Recommendations 2004 (2003 Recommendations, incorporating the amendments of 22 October 2004)

FATF Recommendations - 2003

FATF Recommendations - 1996

FATF Recommendations - 1990

IX Special Recommendations